Approved Code No. 84-Supplernent No. 23 Registry No. 1104-06 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

MACHINE SCREW 

MANUFACTURING INDUSTRY 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON MAY 10, 1934 

WE DO OUR PART 

UNlV. Qfl FL Lll. 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 

II 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign 

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building, 

Birmingham, Ala. : 257 Federal Building. 

Boston, l\Iass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Oharle ton, S.C. : Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

ClHeland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 801 Fir t National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapoli , Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kan as City, l\1o.: 102 Baltimore Avenue. 

Los Angele , Calif.: 1163 South Broadway. 

Loui ville, Ky.: 408 Federal Building. 

l\lemph is, Tenn. : 229 Federal Building. Minneapoli , l\linn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 Ea t Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. . Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, OreO'.: 215 New Post Office Building. 

St. Loui , Mo. : 506 Olive Street. 

San Franci co, Calif. : 310 Customhouse. 

Seattle, Wash.: 809 Federal Office Building. 
Approved Code No. 84-Supplement No. 23 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

• MACHINE SCREW MANUFACTURING INDUSTRY 

As Approved on May 10, 1934 

ORDER 

APPROVING SUPPLEMENTARY CoDE OF FAIR CoMPETITION FOR THE 

MAcHINE ScREW MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

1\'IETAL FINISHING AND METAL COATING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, and in accordance with the 

provisions of Section I of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and 

Metal Coating Industry, approved November 2·, 1933, for approval 

of a Supplementary Code of Fair Competition for the J\1achine 

Screw Manufacturing Industry, and hearing having been duly held 

thereon; and the annexed report on said Supplementary Code, containing findings with respect thereto, having been made and directed 

to the President : 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. G543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Supplementary Code complies 

in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and do hereby order that 

said Supplementary Code of Fair Competition be and it is hereby 

approved; provided, however, that the provisions of Article V, Section 2, insofar as they prescribe a waiting period between the filing 

with the Code Authority (or such agency as may be d·esignated in the 

Code) and the effective date of price lists, as originally filed and/or 

revised price lists or revised terms and conditions of sale, be and they 

hereby are stayed pending my further Order. 

. HuGH S. JoHNSoN, 

Administrator for Industrial Recovery. 

Approval recommended: 

A. R. GLANCY, 

Division Administrator. 

WASHINGTON, D.C., 

May 10, 1934. 

57969°----544-54----34 (1) 
REPORT TO THE PRESIDENT 

The PREsiDENT, 

The White House. 

SrR: This is a report on the Supplementary Code of Fair Competition for the Machine Screw Manufacturing Industry, a division 

of the Fabricated ~fetal Products Manufacturing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., February 2, 1934, in accordance 

with the provisions of Title I of the National Industrial Recovery 

Act. 

GENERAL STATEl\fENT 

The Machine S("lrew Manufacturing Industry, being truly representative of thi division of the Fabricated Metal Products :Manufacturing and Metal Finishing and Metal Coating Industry, ha,s 

elected to avail itself of the option of submitting a Supplementary 

Code of Fair Competition, as provided for in Section 1 of Article 

VI of the Basic Code for the Fabricated ~fetal Products Manufacturing and ~fetal Fini hing and Metal Coating Indu try approved by you on the second day of November, 1933. 

RE U:M:E OF THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Supplementary Code. 

Article III: This Industry is a division of the Fabricated Metal 

Products Manufacturing and ~fetal Finishing and Metal Coating 

Industry and the labor provisions of its Basic Code, as approved 

November 2, 1933, are the labor provisions of this Supplementary 

Code. 

Article IV establi hes a Supplementary Code Authority consisting 

of five (5) members to be elected by the members of the Industry 

at a meeting called by the Temporary Supplementary Code Co.mmittee, and gives the Administrator the authority to appoint one 

additional member without vote and provides machinery for obtaining statistics and the administration of the Supplementary 

Code. 

Article V provides for methods of setting up and revising price 

lists. 

Article VI provides for determining the lowest reasonable costs 

of the products of thi.s Industry. 

Article VII sets forth the unfair trade practices of this Supplementary Code which has been especially designed to offset unfair 

competition in this division of the Industry. 

Article VIII provides against monopolies and monopolistic 

practices. 

(2) 
3 

Article IX contains the mandatory provision.s contained in Section 10 (b) and also provides for the submission of proposed amendments to the Supplementary Code. 

Article X recognizes that price increases be limited to actual additional increases in the seller's costs. 

Article XI statetS the effective date and duration of this Supplementary Code. 

FINDINGS 

The Deputy Administrator in his final report to me on said Supplementary Code having .found as herein set forth and on the basis 

of all the proceedings in this matter: 

I find that: 

(a) Said Supplementary Code is well designed to promote the 

policies and purposes of Title I of the National Industrial Recovery 

Act, including removal of obstruction to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the 

trade groups, by inducing and maintaining united action of labor 

and management under adequate governmental sanctions and supervision, by eliminating unfair competitive practices, by promoting 

the fullest possible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production (except as 

may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing 

power, by reducing and relievin~ unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees; and is not classified by me as a major industry. 

(c) The Supplementary Code as approved complies in all respects 

with the pertinent provisions of said Title of said Act, including 

without limitation Subsection (a) of Section 3, Subsection (a) of 

Section 7, and Subsection (b) of Section 10 thereof; and that the 

applicant group is an industrial group truly representative of the 

aforesaid Industry; and that said association imposes no inequitable 

restrictions on admission to membership therein. 

(d) The Supplementary Code is not designed to and will not permit monopolies or monopolistic practices. 

(e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said Supplementary Code. 

For these reasons, therefore, I have approved this Supplem-entary Code. 

Respectfully, 

M AY 10, 1934. 

HUGH s. JOHNSON' 

Ad1ninistrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE MACHINE SCREW MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED l\IETAL PRODUCTS MANUFACTURING A~ 

METAL FINISHING AND METAL COATING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National Industrial Recovery Act, the following provisions are established as a Supplementary Code of Fair Competition for the Machine Screw Manufacturing 

Industry, pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and 

Metal Finishing and :Metal Coating Industry, approved by the 

President on the 2nd day of November, 1933, the provisions of this 

Supplementary Code shall be the standard of fair competition for 

such Industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Pre ident ", "Act" and "Administrator", 

as use l herein, hall mean respectively, the President of the United 

States the National Industrial Recovery Act, and the Administrator 

for Industrial Recovery, under said Act. 

SECTION 2. The term " Machine Screws " means all ferrous and 

non-ferrous screws commonly known to the trade as machine screws 

manufactured by a cold or hot upsetting process having screw 

threads conforming to American National Screw Threads as approved b. the United States Department of Commerce, Bureau of 

Standards, April 10, 1933 (Miscellaneous Publication No. 141) and 

heads conforming to American Standard Association Report No. 

B18C-1930 as indorsed by the United States Department of Commerce, Bureau of Standards (Miscellaneous Publication No. 141, 

page 116), or threaded product by any other name having screw 

threads of the same standard, and head dimensions and/ or other 

characteristics the same as, or similar to, those embodied in machine 

screws, with slotted, not slotted, flat round, oval, fillister, or other 

style or shape of head manufactured by a cold or hot upsetting 

process, and used with nuts or in tapped holes. 

SECTION 3. The term " product " means and includes u Machine 

Screws" as that term is defined in Section 2, and also includes 

headed, threaded, punched and/ or bent products fabricated with 

ferrous or non-ferrous metals by the producers of" l\1achine Screws", 

but not including products which are subject to other particular 

code or codes approved or which are hereafter approved by the 

President. The term "Machine Screws" also includes all stove 

bolts irrespective of type of screw thread. 

(4) 
5 

SECTION 4. The term "Industry" means and includes the business 

of manufacturing Machine Screws and/or product for sale. 

SEcTION 5. The term " Member of the Industry " as used herein 

includes, but without limitation, any individual, partnership, association, corporation or other form of enterprise engaged in the 

.Industry either as an employer or on his or its own behalf. 

SECTION 6. The term ' employee" as used herein includes anyone 

engaged in the Industry in any capacity receiving compensation for 

his services, irrespective of the nature or method of payment of 

such compensation. 

SECTION 7. The term "employer" as used herein includes anyone 

by whom any such emplo1ee is compensated or employed. 

SECTION 8. The term ' Basic Code " as used herein is defined to 

mean the Basic Code of Fair Competition for the Fabricated Metal 

Products Manufacturing and :Metal Finishing and Metal Coating 

Industry as approved by the President on the 2nd day of November, 

1933. 

SECTION 9. The term "member of the Code" as used herein shall 

mean any member of the Industry who shall have assented to the 

provisions of this Supplementary Code by instrument in writing 

duly filed with the Secretary. 

SECTION 10. The term "Supplementary Code Authority" as used 

herein is defined to mean the agency which is to administer this 

Supplementary Code as hereinafter provided. 

SECTION 11. The term" Bureau" as used herein is defined to mean 

the United States l\1achine Screw Service Bureau, or its successor. 

SECTION 12. The term "Executive Committee" as used herein is 

defined to mean Executive Committee of the United States Machine 

Screw Service Bureau. 

SEcTION 13. The term "Secretary" as used herein is defined to 

mean Secretary of the United States Machine Screw Service Bureau, 

or such other impartial and confidential agency as the Supplementary Code Authority may designate. 

ARTICLE III-EMPLOYl\fENT PROVISIONS 

This Industry is a division of the Fabricated Metal Products 

Manufacturing and Metal Finishing and Metal Coating Industry 

and the wage, hour and labor provisions in Article III of its basic 

code as approved by the President November 2, 1933, including 

Section 1 of said Article III by which the provisions of Subsections 

(1), (2) and (3) of Section 7 (a) of Title I of the Act are made 

conditions of this Code, are specifically incorporated herein and 

made a part hereof as the wage, hour and labor provisions of this 

Supplementary Code. 

ARTICLE IV-ORGANIZATION AND ADMINISTRATION 

SECTION 1. During the period not to exceed sixty (60) days following the effective date, the Executive Committee shall constitute a 

Temporary Supplementary Code Authority, who shall have all the 

powers and duties of the Supplementary Code Authority herein set 

forth, until the Supplementary Code Authority is elected. There 
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shall be constituted within the sixty-day period a Supplementary 

Code Authority consisting of five ( 5) members to be elected by the 

members of the Industry, as hereinafter provided, at a meeting called 

by the Temporary Supplementary Code Authority, upon ten days; 

notice sent by registered mail to all members of the Industry whose 

names can be ascertained after diligent search, who may vote either 

in person or by proxy. The members of the Supplementary Code 

Authority first elected shall erve until the following annual meeting 

of the Bureau andjor until their successors are elected, and thereafter, members of the Supplementary Code Authority shall be elected 

immediately after such annual meeting of the Bureau to serve until 

their succe sors are elected, and any member shall be eligible for 

re-election. Notice of each election shall be sent in the manner above 

provided. The membership of the Supplem.entary Code Authority 

hall be made up as follows: 

(a) 1. Four (4) member who shall be members of the Industry 

elected by a majority vote of the members of the Bureau pre ent in 

person or repre ented by proxy, each member to have one vote; 

2. At any time upon the request in writing of twenty-five per 

cent (25%) of the members of the Bureau, the Supplementary Code 

Authority hall call a Ineeting of the members of the Bureau upon 

the notice above provided for the purpose of el cting succe sors to 

such four member of the Supplementary Code Authority to be 

elected in the same manner as provided in Sub-Paragraph 1 of this 

Paragraph (a); 

(b) One (1) member who is not a member of the Bureau elected 

by majority vote of the members of the Industry not members of the 

Bureau, present in per on or represented by proxy, each member to 

have one vote; 

(c) A vacancy in the member hip of the Supplementary Code 

Authority may be filled by majority vote of the remaining members 

of the Supplementary Code Authority; 

(d) In addition to the above the Admini trator may appoint one 

(1) representative without vote and without expense to the Industry 

un1e s the Supplementary Code Authority agrees to pay such expense, 

to serve on said Supplementary Code Authority in the admini. tration 

of this Supplementary Code. Said representative shall be given 

reasonable notice of all meetings of the Supplementary Code 

Authority. 

SECTION 2. Any Association/ Institute and/or Bureau directly or 

indirectly participating in the selection or activities of the Supplementary Code Authority shall (1) impo e no inequitable re trictions on membership, and (2) submit to the Administrator true 

copies of its Articles of As ociation By-Laws, Regulations and any 

amendments when made thereto, together with such other information a to membership, organization, and activities as the Administrator may deem nece sary to effectuate the purposes of the Act. 

SECTIOK 3. In order that the Supplementary Code Authority shall, 

at all times be truly representative of the Industry and in other 

respects comply with the provi ions of the Act, the Administrator 

may prescribe such Hearings as he may deem proper; and, thereafter, if he shall find that the Supplementary Code Authority is not 

truly representative or does not in other re pects cmnply with the 
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provisions o£ the Act, may require removal of any or all of the 

members thereof andj or may make an appropriate modification or 

modifications in the method of selection of the Supplementary Code 

Authority. 

SECTION 4. The Supplementary Code Authority is hereby constituted the Agency to administer the provisions of this Supplementary 

Code and to collect and distribute all statistical reports of the Industry. With a view to keeping the President informed as to the 

observance or non-ob ervance of this Supplementary Code, said 

agency shall collect, through i:,he Secretary, such statistics as called 

for by the President and/ or the Administrator and send them in 

such form as the President and/ or the Administrator may require 

to the Fabricated Metal Products Federation, or successor organization, as the agency administering said Basic Code. All individual 

reports shall be treated as confidential by the Secretary and shall 

not be disclosed to any member of the Indu try or any other party 

except where necessary in the enforcement of this Code and except 

to such governmental agencies as may be directed by the 

Administrator. 

SEmoN 5. Said Agency shall also from time to time furnish to the 

Basic Code Authority, designated in said Basic Code, such information as may be required to be furnished under the terms of aid 

Basic Code. 

SECTION 6. The Supplementary Code Authority shall have power 

from time to time to require each member of the Industry to furnish 

to the Secretary such information concerning the production, shjpments, sales and orders of such member and the hours of labor, 

rates of pay and other conditions of employment at the plant or 

plants of such member and such other information as the aiel Supplementary Code Authority shall deem necessary or proper in order 

to effectuate the purposes of this Supplementary Code and the policy 

of the Act. All individual reports shall be treated as confidential 

by the Secretary and shall not be disclosed to any member of the 

Industry or any other party except where necessary in the enforcement of this Code and except to such governmental agencies as may 

be directed by the Administrator. SECTIO~ 7. The Supplementary Code Authority may require that 

any such information be furnished periodically at such times as it 

shall specify and may require that any or all information furnished 

be sworn to or otherwise certified or authenticated a it shall prescribe. Failure of any member of the Industry promptly to furnish 

to the Secretary information required by the said Supplementary 

Code Authority and ubstantially in the form prescribed by it shall 

constitute a violation of the Code. The Supplementary Code 

Authority shall not require any information regarding trade secrets. SECTION 8. Any or all information furni heel to the Secretary by 

any corporate member of the Industry specifically assenting h~reto • 

pursuant to the provisions of this Code shall be ubject to venfica- tion by an examination of the pertinent or necessary book , accounts 

and records of such member by the Secretary or by any accountant 

or accOlmtants or other person or person~ designated by the ~upplementary Code Authority (none of whom shall be connected w1th any 

member of the Industry) and shall be o checked for such purpose, 
8 

if the Supplementary Code Authority shall require it. The cost of 

each such examination shall be treated as an expense of administering 

the Code. 

SECTION 9. All members of the Industry are subject to the jurisdiction of the Supplementary Code Authority; shall be entitled to 

participate in and share the benefits of the Supplementary Code 

Authority; shall be entitled to vote in the selection of the Supplementary Code Authority as provided in Section 1 of this Article; 

and shall pay to the Secretary as the agent of the Supplementary 

Code Authority their reasonable share of the expenses of the Administration of this Supplementary Code, such reasonable share to be 

determined by the Supplementary Code Authority, subject to review by the Administrator, on the basis of volume of business and/or 

such other factors as may be deemed equitable by the Supplementary 

Code Authority. 

SECTION 10. Nothing contained in this Supplementary Code shall 

be deemed to con titute the members of the Supplementary Code 

Authority partners for any purpo e whatsoever. Nor shall any 

member of the Supplementary Code Authority be liable in any 

manner to anyone for any act of any other member, officer, agent, 

or employee of the Supplementary Code Authority. Nor shall 

any member of the Supplementary Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable 

t o anyone for any action or omission to act under this Code, except 

for his own willful misfeasance or non-feasance. 

SEcTION 11. The Supplementary Code Authority may adopt, subject to the approval of the Administrator, and thereafter all members 

of the Industry shall maintain, uniform credit terms. Such credit 

terms shall clearly appear on all quotations, invoices and acceptances 

of orders. 

SECTION 12. If any member of the Industry as defined herein is 

also a member of any other Industry, the provisions of this Code 

shall apply to and affect only that part of his bu iness which is 

included in the Industry. 

SECTION 13. The Supplementary Code Authority shall without 

any limitation on the foregoing have the following further general 

powers and duties subject to such rules and regulations as the 

Admini trator may prescribe: 

(a) To in ure the execution of the provisions of this Supplementary Code and provide :for the compliance of the Industry with 

the pro vi ions of the Act; 

(b) To adopt by-laws and rules and regulations for its procedure 

and for the administration of the Supplementary Code; 

(c) To obtain from members of the Industry such information 

and reports as are required for the administration of the Supplementary Col1 . In addition to information required to be submitted 

to ~he Sup] l~menta ry Code Authority, all or any of the persons 

subJect to th1s upplementary Code shall furnish such statistical 

informat~on a_s the ~clministrator may deem necessary for the purpo e rec1ter:l 1n ectwn 3 (a) of the Act to such Federal and State 

agencies as the Administrator muy designate. Provided that nothing 

in this Supplementary Code shall relieve any member of the Indus-
9 

try of any existing obligations to furnish reports to any government agency. 

(d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Supplementary Code Authority of its duties or responsibilities under this Supplementary Code and that such trade associations and agencies shall 

at all times be subject to and comply with the provisions hereof; 

(e) To make recommendations to the Administrator for the coordination of the administration of this Supplementary Code with 

such other codes, if any, as may be related to the Industry; 

(£) To secure from members of the Industry an equitable and 

proportionate payment of the reasonable expenses of maintaining 

the Supplementary Code Authority and its activities; 

(g) To cooperate with the Administrator in regulating the use 

of any N.R.A. insignia solely by those members of the Industry 

who have assented to, and are complying with, this Supplementary 

Code; 

(h) To recommend to the Administrator further fair trade practice prQvisions to govern m.embers of the Industry in their relations 

with each other or with other industries and to recommend to the 

Administrator measures for industrial planning including stabilization of employment. 

SEcTION 14. If the Administrator believes that any action of the 

Supplementary Code Authority or any agency thereof is unfair 

or unjust or contrary to the public interest, the Administrator may 

require that such action be suspended to afford an opportunity for 

investigation of the merits of such action. Further action by such 

Supplementary Code Authority or agency regarding the matter 

complained of may be taken if approved by the Administrator but 

shall not be taken if disapproved by the Administrator within thirty 

days of notice to him o£ intention to proceed with such action. 

ARTICLE V-PRICE LISTS 

SEcTION 1. The Supplementary Code Authority may require that 

each member of the Industry who manufactures and sells any product of the Industry not used by himself in the manufacture of 

another product, shall file with the Secretary and publish a net price 

list and/ or a price list and discount sheet individually prepared by 

him showing his current prices and/ or prices and discounts, and 

other conditions of sale, including discounts for various classes of 

customers or for quantity. Said price list and any revised price 

list shall be made available to all interested parties. 

SECTION 2. The Secretary shall immediately send copies thereof 

to all other members of the Code. Such price lists, discounts, and 

conditions may be revised from time to time thereafter, and notification of such revision shall be filed with the Secretary and published. Such revision shall be deemed filed and effective within the 

meaning of this provision when telegraphic acknowledgement of 

receipt of such revision shall have been received by the person making such revision, and copies of such revision shall be immediately 

sent by the Secretary to all other members of the Code, who there-
10 

upon may file, if they so desire, revisions o:f their price lists, dis- counts, and conditions which may become effective upon the date 

when the revised price data fir t filed shall go into effect.

1 

SECTION 3. No member of the Industry shall sell directly or indi- rectly through an affiliated company, or otherwise, by any means 

whatever any product of the Industry at a price lower, or at dis- counts greater, or on conditions more favorable to the buyer than 

those provided in his current price data filed with the Secretary as 

above provided; provided, however, that at any time a m.ember of 

the Industry may meet the lawful price, and/or conditions of any 

competitor for products of an equal grade or quality, or for products 

competing with products of the Industry. Any such meeting of a 

lawful price by a member of the Industry must be reported at once 

by such member to the Secretary. An "affiliated company" for the 

purpose of this section means a company the majority of whose vot- ing tock is owned or controlled by a member of the Industry. For 

all purposes of this Article a delivery of any product made pur uant 

to a contract of sale shall be regarded as a sale thereof made at the 

time of the making of such contract. Lawful price for the purposes 

of this Section is defined to mean any price which a member of the 

Indu try may make pursuant to this Code, or any price which a 

competitor of any m.ember of the Industry may make without violating any provision of any Code or Codes to which such competitor 

is subject or without violating any Federal Law, State Law, or the 

Law of any political subdivision thereof. ECTIO:N 4. No provision of this Code relating to prices or terms o:f 

selling, shipping or marketing shall apply to export trade or sales 

or hipments for export trade within the meaning of the term "export trade " as it is used in the Export Trade Act. 

AnTICLE VI-SALES BELOW REA.sox ABLE CosT 

Notwithstanding any other provisions of this Supplementary Code, 

when the Supplementary Code Authority determines that an emergency exists in this Industry and that the cause thereof is destruc- tive price-cutting such as to render ineffective or seriously endanger 

the maintenance of the provisions of this Supplementary Code, the 

Supplementary Code Authority may cause to be determined the 

lowest reasonable cost of the products of this I ndustry, such determination to be subject to such notice and hearing as the Administrator may require. The Administrator may approve, disapprove, 

or modify the determination. Thereafter, during the period of the 

emergency, it shall be an unfair trade practice for any member of 

the Industry to sell or offer to sell any products of the Industry for 

which the lowest reasonable cost has been determined at such prices 

or upon such terms or conditions of sale that the buyer will pay 

less therefor than such lowest reasonable cost of such products. 

When it appears that conditions have changed, the Supple- mentary Code Authority, upon its own initiative or upon the request 

of any interested party, shall cause the determination to be reviewed. 

1 See paragraph 2 of order approving this Code. 
11 

ARTICLE VII-UNFAIR PRACTICES 

SECTION 1. For all purposes of this Supplementary Code the fol· 

lowing described acts shall constitute unfair practice-s. Such unfair practices shall be deemed to be unfair methods of competition 

in commerce within the meaning of the Federal Trade Commission 

Act as amended, and any member of the Industry who shall directly 

or indirectly through any officer, employee, agent or representative 

use or employ any of such unfair practices shall be guilty of a violation of this Code. 

A. The provisions of Article V paragraphs B to G, inclusive, of 

the Basic Code are a part of this Supplementary Code to the same 

extent as though here repeated and set forth at length. 

B. The sale or e.xchange of any product in whole or in part below 

the cost of such product to th@ particular member of the Industry, 

such cost to be computed according to a cost formula to be prescribed 

or approved by the Supplementary Code Authority and approved by 

the Administrator; 

Provided, however, that dropped lines, or seconds, or inventories 

which must be converted into cash to meet em.ergency needs may be 

disposed of by any member of the Indu try, at any price and on 

any terms and conditions, but only if such member of the Industry 

has filed with Supplementary Code Authority, not less than two 

weeks before such disposal, a statement in writing, setting forth the 

fact of and reasons for, such proposed disposal. 

Provided, further, that selling below cost (as defined in Paragraph 

1 of this subsection B) to meet existing competition on products of 

equivalent design, character, quality or specifications shall not be 

deemed a violation of this Article. 

C. Using or substituting any material superior in quality to that · 

specified by the purchaser of any product, for the purpose of influencing purchase or future purchase. 

D. Cancelling in whole or in part, or permitting the cancellation 

in whole or in part, of any contract of sale of any product, except 

for justifiable cause or a fair consideration. 

E. Inducing or attempting to induce the breach of any provision 

of a contract to which a member of the Code is a party. This clause 

shall not be construed to apply to contracts of employment. 

F. Aiding or abetting any person, firm, association or corporation 

in any unfair practice. 

G. Offering or giving to any purchaser of any product any guaranty or protection in any form against decline in the market price 

of such product after the date of shipment. 

H. Selling or offering to sell special Machine Screws below the 

lawful price of the corresponding or the next larger or longer standard or listed size Machine Screw determined in accordance with the 

provisions of Article V hereof, plus the cost of the special feature or 

features. 

I. Soliciting by any member of the Industry the pooling of orders 

from several buyers in a manner to give the buyers advantage of 

more favorable price or terms than those to which the buyers would 

be entitled individually. 
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J. Consigning merchandise for any reason whatsoever, except to a 

wholly owned or controlled subsidiary, or except under circmnstances to be defined by the Supplementary Code Authority where 

peculiar circumstances in the Industry require the practice. 

K. Making contracts of sale that permit the buyor to cancel and/or 

provide for a reduced price in event of a market decline, but which 

do not permit the seller to cancel and/ or do not provide for an 

enhanced price, in the event of a market rise. 

L. l\1aking contracts requiring delivery of specified quantity or 

quantities in specified time, if demanded by buyer, but not requiring 

the buyer to accept such quantity or quantities within the specified 

time. 

lVL l\Iaking contracts at a specified price for an unspecified quantity for delivery as demanded by the buyer during the period unless 

the contract is for a fixed percentage of the total consumption requirements of the purchaser of the particular product and unless 

it is agreed in such contract that specifications p1aced durin<r the 

last third thereof shall not exceed the total p1eccs specified for 

shipment during the first two-thirds thereof; or making any such 

unspecified quantity contract above described except on a standard 

form or forms approved by the Supplementary Code Authority 

and the Administrator; or failing to file with the Secretary a copy 

of each and every different form of contract entered into by a member of the Industry within five days after entering into a contract 

in such form. 

N. Making contracts for periods in excess of three months (all 

contracts to expire not later than the last days of March, June, 

September or December) or quoting on or making any quarterly 

contract more than thirty (30) days prior to the first day of the 

calendar quarter covered by the contract, or shipping pursuant to 

any contract more than fifteen (15) days after the expiration thereof, 

or as soon thereafter as seller can manufacture and ship the same, 

or making contracts containing an option of extension or renewal 

on the part of either buyer or seller. 

0. Accepting orders for deliveries extending beyond four ( 4) 

months from date of order. 

P. Appointing, continuing to employ or paying a commission, 

salary or any other form of compensation to a jobber or dealer or 

syndicate buyer of any character as an agent, except under circumstances where such jobber, dealer or ,syndicate buyer acts clearly 

as an agent and does not simultaneously perform the functions of 

a jobber, dealer or syndicate buyer in a specific transaction or transactions, or entering into any kind of an exclusive territory arrangement with a jobber, dealer or syndicate buyer. 

Q. Continuing to employ any salesman, agent or employee who 

shall give any or all of his commi,ssion to any purchaser. 

ARTICLE VIII-MoNOPOLIEs 

No provision of this Supplementary Code shall so be applied as 

to permit monopolies or monopolistic practices, or to eliminate, 

oppress or discriminate against small enterprises. 
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ARTICLE IX-MoniFIOATIONS 

SECTION 1. This Supplementary Code and all the provision;; thereof are expressly made subject to the right of the President, in accm·dance with provisions of subsection (b) of Section 10 of the Act, 

from time to time, to cancel or modify any order, approval, license, 

rule or regulation i sued under said Act. 

SECTION 2. This Supplementary Code, except as to provisions 

required by the Act, may be modified or amended on the basi.s of 

experience or changes in circumstances, such modifications or amendments to be based upo api_Jlication by the Supplementary ode 

Authority or other representative group within the Industry to the · Administrator and such Notice and Hearing as he shall specify and 

to become effective and be a part o.f this Supplementary Code on 

approval by the Administrator. 

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ARTICLE X-PRICE INCREASES 

'iVhereas the policy of the Act to increase real purcha.sing power 

will be made more difficult of consummation if prices of goods and 

services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual costs 

,should be delayed, but when made, such increases should, so far as 

possible, be limited to actual additional increases in the seller's 

co ts. 

ARTICLE XI-EFFECTIVE DATE 

This Supplementary Code shall become effective at 12: 01 o'clock 

A.M. Eastern Standard Time of the tenth day after it .is approved 

by the President, and shall continue in effect until June 16, 1935, 

or the earliest date prior thereto on which the President shall, by 

proclamation, or the Congres.s shall, by joint resolution, declare 

that the emergency recognized by Section 1 of the Act, has ended. 

Approved Code No. 84-Supplcment No. 23. 

Registry No. 1104-06. 

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UNIVERSITY OF FLORIDA 

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